Service Tax Exemption Granted for Vocational Training in Business, Fashion, Advertising, Graphic Design, Media, Hospitality, and Hospital Administration

Centax Editorial Board

February 22, 2025

• 2 min. read

Case Details: Commissioner of Service Tax, Delhi Versus WLC College India Ltd. (2025) 27 Centax 208 (S.C.)

Judiciary and Counsel Details

Abhay S. Oka & Ujjal Bhuyan, JJ.
Ms Nisha Bagchi, Sr. Adv., S/Shri V.C. Bharathi, Ms Astha Singh, Ms Satvika Thakur, Advs. & Gurmeet Singh Makker, AOR, for the Appellant.
Ms Ashwini Chandrasekaran, Ms Priyanka Rathi, Ms Priyanshi Chakraborty, Ms Shubhangi Gupta, Advs. Shri Pawanshree Agrawal, AOR, for the Respondent.

Facts of the Case

The assessee, engaged in providing vocational training in the fields of Business, Fashion Technology, Advertising & Graphic Design, Media, Hospitality, and Hospital Administration, claimed exemption from service tax under Notification Nos. 9/2003-Service Tax and 24/2004-Service Tax. The tax authorities disputed this claim, arguing that the training provided did not qualify as vocational training as per Sections 65(26), 65(27), and 65(105)(zzc) of the Finance Act, 1994. The matter was adjudicated before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which ruled in favour of the assessee, holding that the training imparted fell within the scope of vocational training eligible for service tax exemption. The Revenue, aggrieved by the decision, filed an appeal before the High Court. The High Court, affirming CESTAT’s findings, held that the training met the criteria for exemption under the said notifications. The Revenue challenged this ruling before the Supreme Court, contending that the High Court had erroneously classified the courses as vocational training.

Supreme Court Held

The Hon’ble Supreme Court held that the concurrent findings of fact recorded by the High Court and CESTAT did not warrant interference. The Court observed that the findings were neither illegal nor perverse and were based on a proper interpretation of Notification Nos. 9/2003-Service Tax. and 24/2004-Service Tax. Accordingly, the Court dismissed the Revenue’s appeal, upholding the exemption granted to the assessee’s vocational training services.